Critical Success Factors: The SWOT Analysis Of Tesco

At Tesco information technology is right at the heart of their business, as it’s essential for the business to run effectively and it also helps them improve their customers shopping experience by faster tills and stock checking systems. The use of IT is helping them to know what to sell, and also to help deliver the product to sell. Many different areas in Tesco put it to good use for example

Tesco is the largest UK store, founded in 1999 by Cohen. It is currently among the principal retailers in the world (Akridge, 2012). The company has undergone different steps to put up with customer demand (Piercy, 2012). Because of these steps, changes have occurred that have increased customer satisfaction (consortium, 2006). This has introduced self checkout systems which have increased sales and save more time while shopping (Jones 2008). These systems also bring challenges (infrastructure network 2002). Different solutions can be used to counter these problems

Analyzing information used from the SWOT analysis of Tesco shows industries of this nature do expand especially as neighborhood markets. Tesco holds a 13 percent share in the retail market with a multiformat sector showing the increased gained capacity in food sharing and space contribution. Tesco is the number one online grocery market and operates over 270 stores. The weakness of the company is its dependency on the UK market but is only classified as a small weakness. The company offsets this weakness with a large enterprise value of 23 billion, vast product range and justifiable acquisitions. The main danger is becoming a known serial acquirer since this reduces earnings and quality. Company opportunities lie with

Tesco is one of the leading supermarkets in United Kingdom as well as is a second largest retailer in the world right after Walmart. Tesco is considered as a multinational grocery and general merchandise retailer headquarter. As Tesco had been grown and developed and the retailing market has changed over the past 78 years, Tesco has bring in variety of technology systems to help the company in performing task at different level management which rom the operational level to the executive level. This is the structure that the system allowed the business to run smoothly and to ensure that zero mistake decisions are made and the reports are composed for effective management. Therefore, there are two of the information technologies or information

Bob’s Supermarket SWOT Analysis shows the supermarket displayed strengths with having loyal customers, customer service, and a POS System that helped them “improve both their sales and profit margins” (Parnell, 2014). Their weaknesses showed they lack having attractive displays, a marketing strategy, “limited advertising and promotions” and “attract long-term workers” (Parnell, 2014). In fact, Bob’s Supermarket has the potential to take advantage of many opportunities such as expanding their “products or services” (Matsa, 2011), utilizing innovations, re-branding their image such as making uniforms with name tags available for employees, and remodeling the interior, lighting and fixtures of Bob’s Supermarket (Parnell, 2014). Their threats

Waitrose is a chain of super-markets in United Kingdom focused on the grocery business. The organization as of 2010 had 228 retail branches only in UK making it the 6th largest retailer with a market share of 4.3% in UK (Corporate Watch, 2012). The grocery business is a major contributor to the food industry and forms the core of the retailing venture attracting many market players in UK such as Tesco, Iceland, Somerfield, Sainsbury’s, and ASDA. This has led to intense competition compelling Waitrose to embrace a differentiation strategy of aiming at the so called upper class which prefers quality and fresh produce (NY, 2012). This has made the organization to have a good

In addition Tesco’s cost of sales has been compounded by a disproportional increase in 2010/11 by 7.07% and by 5.92% the following year (with a much smaller increase in from 2012/13). It is difficult to ascertain the reason for this increase in cost of sales, perhaps recent supplier scandals have forced Tesco to pay more of a premium for higher quality goods and thus increase cost of sales, or perhaps it can be traced to the type of goods supplied and the increasing commodity costs across international regions (particularly in light of Tesco’s international trading interests, which Sainsbury’s don’t have) or perhaps it can be put down to the scale of the operation which Tesco manages. It must reach a point where its huge buying power and normal economies of scale, which it has relied on to ensure a relatively high Gross Profit margin (much higher than Sainsbury’s), fails to negate the costs and difficulties of managing such large scale international

SWOT has been used by countless practitioners, marketing researchers, and is a frequent and popular tool for business marketing and strategy students. Its simplicity and catchy acronym perpetuates its usage in business and beyond as the tool is used to assess alternatives and complex decision situations. In the business arena the grouping of internal and external issues is a frequent starting point for strategic planning. It can be constructed quickly and can benefit from multiple viewpoints as a brainstorming exercise. Typically, managers first consider internal strengths and weaknesses (at the top row of the 2 × 2 grid) which can include image, structure, access to natural resources, capacity and efficiency, and financial

The low priced fair-trade cotton clothing could lead to price wars. In addition, there can be low profitability because of competitive moves for Tesco. Finally, international competitors like Wal-Mart could add a cotton line in Germany to compete with Tesco.

Because of this reason, with the competition of discount chains which include Aldi?s, Lidl?s, and other retailers, Tesco may need to considered the repositioning of their business strategy to deal with the problems of the decrease of their sales and their market share. Therefore, this research would try to identify the reason of the decrease of Tesco?s sales and market share and provide some suggestions to help Tesco to reposition themselves to fight the discount chains.

Tesco are currently leading in the market their like for like sales have increased by 0.7% in its core UK business with a 1.3% growth for foo (Fedor, L. 2017). Tesco currently has many automated hybrid facilities in terms of their operations management but their online presence is increased due to them being UK’s largest retailer with ‘over 3, 500 stores and over 310,000 colleagues’ (Tesco plc. 2017). Tesco’s current business model focuses on four areas: Sell, Insight, Buy and Move. Their strategy is to use the virtuous cycle and develop economies of scale across all of their business functions, ‘by doing the right thing for customers’ (Tescoplc.com. 2017). This means they use a centralized approach when it comes to its consumers as decisions are made at the top and integrated throughout the business.

The SWOT analysis is one of several strategic planning tools that are used by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort, both positive and negative, are identified and addressed. In order to accomplish this task, the process involves four areas of consideration: strengths, weaknesses, opportunities, and threats. It should be noted that, when identifying and classifying relevant factors, the focus is not just on internal matters, but also external components that could impact the success of the project or programme.

Tesco looks at the customer needs and customer trends by using a Tesco Club Card program that records data on what the customer is buying, where the customer live, how much of the item the customer is buying etc. By recording this information, Tesco can understand exactly what customers are buying and much more information. Tesco continually stock their stores with the newest products when they become available to ensure that there is a wider market of products available to its customers.

Tesco, as a major food manufacturer, in a very competitive market sector, it is the UK 's largest grocer and the most successful Internet supermarket. The recent history of Tesco is the story of a retailer 's successful evolution: its diversification into new businesses and in particular its leap-frogging of long-standing market leader Sainsbury 's to become the number one UK retailer. As self-service high street supermarkets were superseded by superstores and megastores, consumers became anonymous in exchange for improved choice and value. With the global business strategy, competitive advantage usually comes from common global brands and from concentrated production activity that has been sited to deliver significant economies of scale and resource souring. There may be some adjustment of the product or service for local needs but essentially it is the same around the world. The term 'globalisation ' is used to cover three main area, which is globalisation of economies, trade activities and regulatory regimes; globalisation of industries; morality of globalisation. Under this generation, Tesco launched some project to meet different needs from different customers. Such as launched Clubcard to win customer loyalty.

Tesco have incorporated a virtual shop for use at airports, it allows travelling passengers to utilise spare time they would have when waiting for departure by allowing them to scan barcodes and place orders for shopping through a Tesco app. The capital costs for setting this up could be quite big as creating a well working app to be functional with the virtual store may cost a significant amount, the virtual boards displaying the shop will also need to be purchased and installed. Long term it is proven to show that online sales have increased significantly and new customers have been bought into Tesco stores once used in the airport. Tesco holds their own specific department that is dedicated to finding innovative and creative ways to enhance the customer experience; this is called ‘Tesco labs’. Recently Tesco have developed their apps to work in store, so that if an item is out of stock it will be able to be scanned and delivered to the customer at a later date. They have done this to increase customer satisfaction so they are not disappointed by having their desired item out of stock, it also works positively for Tesco as it makes up for what would have been a lost sale.